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Book-Keeping & Accounting for Small Business, 7th edition by Peter Taylor

By Peter Taylor

Debts are only as vital as the other element of a enterprise, and will be an important to its prosperity or even survival. In "doing the books" you'll be on the very center of the company, along with your fingers at the controls. you'll be excited about the administration of its resources and liabilities, its charges and its revenue margins. The extra keep an eye on you might have over those, and the documents and figurework on which they're established, the higher it is possible for you to to manage your personal enterprise.

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Additional resources for Book-Keeping & Accounting for Small Business, 7th edition

Example text

G. if your taxable turnover in the last 12 months up to the end of January is over the limit, your date of registration will be 1 March). The easiest way to notify them is to use the 42 Book-keeping & Accounting for the Small Business National VAT help line. The number is 0845 010 9000. If you take over an existing business then you must take account of the level of taxable turnover under the previous owner and the date of registration will be the day the business was transferred. If your turnover is below the limit for compulsory registration you can still apply to register for VAT if you think it will be an advantage.

If you hold some back your records become far more complicated and there is the danger that part of the transaction will not be recorded, with complications and expense later on. Each month check out the amounts received and paid against your statements (see below) and add them up (see Figure 2). Then record the difference between your receipts and payments. This represents the amount of money that the business has in its bank account. If the receipts (including the balance brought forward from the previous month) exceed the payments, then you have cash at the bank; in this case the balance should be 'carried down' as shown.

T/a just means 'trading as'. 2. If you don't already bank with the particular bank they will probably ask you for the names of two or three people they can approach for references. This is so that they can establish that you are of good character. Do ask the people that you name before you give their details to the bank. 3. g. both partners? ). 4. Decide how often you need bank statements to be issued to you: generally once a month is about right. Handling cheques and paying-in books A cheque is a simple means of making payments out of your bank account.

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